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iGlobal SeminarOctober 14, 2009

Damien Georges

Managing Director

Hipercept Inc.

dgeorges@hipercept.com

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• Integrating information from third parties (property managers, JV partners, asset managers)

• Determining the impact of changes in asset acquisition/disposition strategies on investment and investor returns, including:

– Hypothetical portfolios

– Debt financing and refinancing changes

– Impact of changes in underlying property leasing assumptions and major tenant changes on NOI and value

• Managing diverse global portfolios and trying to consolidate that information into an accurate portfolio level understanding

Challenges

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Business Intelligence and Data Governance

• Using a Business Intelligence and Data Governance framework to tackle these challenges

• This framework supports the consistent business requirement:

– “I want to see all the information that tells me how my business is running, has run and will run in one place”

• The reality of trying to meet the requirement:

– Access to high accuracy (data governance) information in underlying systems

– Complex systems integration

– Method for aggregating and normalizing data

– Reporting

– Business buy-in, stamina and significant investment

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Why should you care?

• I am focused on driving revenue (not technology or operations)

– These systems can be used to better manage your portfolio

• Risk management (exposure analysis)

• Debt management (loan-to-value, debt service coverage)

• Improving investment and investor returns (scenario analysis, assumption sensitization)

– Successfully implementing this framework will result in better portfolio management

– This framework is not a luxury in the current environment

• Both from the investment manager and the investors perspective

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Integrated Enterprise Analytics Environment

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Garbage in Garbage Out

Without the dual implementation of a BI and data governance infrastructure it is difficult to provide information that end users can trust.

The combined strategy enables effective risk management and leads to better decisions.

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Implemented across the enterprise in a diverse vendor landscape

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Solving the challenge – Combining Best Practices

• Combination of past projects for private equity and investment management firms

– Implementing data governance and business intelligence in parallel

– Defining, publishing and monitoring data standards

– Creating a system agnostic schema for the consumption of information

• Leveraging existing standards and benchmarks (OSCRE, PISCES, IPD and NCREIF)

– Investing several million dollars in establishing and maintaining this platform

• Building a comprehensive business case to support this investment

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Focused on supporting the investment lifecycle

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Collecting information

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Taking a system agnostic approach to a data model

Fund

Investment

InvestmentHoldings

Asset Holdings

Asset

Financials

Chart of Accounts

PropertyGroup

Property

Unit

Space

LeaseTenant

Appraisal

Tax

Insurance

AccountsReceivable

Options

Charges

Sales

Investors

Debt

EquityStructure

FINANCIAL OPERATIONAL

Engineering

Acquisition

OSCRE Hybrid Approach